Rental Costs				Buying Costs
Annual rent	$	7,730		Annual mortgage payments	$	10,600	($9,637 is interest)
Insurance		174		Property taxes		2,160
Security deposit		1,180		Insurance/maintenance		1,110
				Down payment/closing costs		4,500
				Growth in equity		963
				Estimated annual appreciation		1,800

Assume an after-tax savings interest rate of 8 percent and a tax rate of 28 percent.

(a) Calculate the total rental cost and total buying cost.